A federal grant of $3.2 million used the past three years to pay salaries is expiring.
HOLYOKE — Expiration of grants and increased costs such as those for busing homeless students have officials pessimistic about avoiding employee layoffs in the next school budget.
Also, officials with a non-profit agency told the School Committee on Monday night the organization will withdraw from its contract unless the city gives it complete autonomy to run the troubled Dean Technical High School.
Committee Vice Chairman Devin M. Sheehan said he doubted layoffs of some of the system’s 1,600 employees could be avoided in the fiscal year that begins July 1.
“I don’t see that not occurring,” Sheehan said after the meeting.
The budget approved for the current fiscal year was $88.2 million.
Devin SheehanThe school budget includes a city appropriation of $62,879,111. But most of the school budget, including part of the funding that is considered the city appropriation, consists of state aid.
Christine P. Regan, school executive director of finance, updated the committee on the development of the next budget.
Federal stimulus money that consisted of three years at $3.2 million a year expires after June 30. The schools had used that money, not to hire new people, but to pay salaries for existing custodians, clerks, paraprofessionals and assistant principals, she said.
Also, with a quarter of the student enrollment of 5,900 in special education, such costs account for $15 million. But the main source of funding to the schools, state aid known as Chapter 70 money, stipulates a formula that allows the city just $6 million for special education, she said.
“So we’re down already $9 million,” Regan said.
State law requires that the city pay to transport students in homeless families that the state has placed in hotels here to attend school in their home communities. In the current fiscal year, the city will spend $450,000 on that, $170,000 more than budgeted, she said.
The gloom forced officials to order building principals and department heads to cut their budget plans for the next fiscal year by $11 million, with Sheehan saying those accounts now already are at “bare minimum.”
“It’s going to devastate public education in the city of Holyoke,” committee member at large Howard B. Greaney Jr. said.
Budget discussions will continue in finance subcommittee meetings set for May 15 and 17 at 5:30 p.m. at Dean, Fifield Community Room, 1045 Main St., officials said.
Additional meetings will be held later this month before a decision is made about the Northampton-based Collaborative for Educational Services and Dean, Sheehan said.
Collaborative for Educational Services Executive Director Joan E. Schuman said making the changes that are needed to turn around Dean require that the Collaborative have complete authority. That includes power to develop and enforce the student admission policy, set enrollment capacity, and hire, fire and move around staff, she said.
“We need complete authority for the principal to run the school in a way we feel it should be run,” Schuman said.
The state ordered the city to hire a manager for Dean because of students’ chronically poor test results. Federal and other grants are paying the agency $606,520.
Schuman’s remarks prompted rebukes. Ward 3 committee member Dennis W. Birks Jr. said the Collaborative was avoiding responsibility.
“It’s frustrating and it’s shameful,” Birks said.
Some questioned why the Collaborative failed to note such powers were needed when it began managing Dean in July. Schuman said the Collaborative made its needs known at the outset, has raised concerns since the school year began and was trying to work with local officials.
“It leaves a sour taste in my mouth,” Greaney said.